Cryptocurrency Trading Platforms- Are they safe to use?

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Note: This is a guest post by Jonathan C

Modern-day technology has changed how we do most things, from shopping to trading, communication, and modern-day finance, through cryptocurrencies. Once you start to trade in crypto, the thrill is so much you may get caught up in the moment and lose all your investments: There some trading platforms that are more safe and legit than others when it comes to trading cryptocurrency.

The main worry about trading crypto is insecurity, loss of funds, the reputation of a trading platform, and the volatility in the market. To trade on a good platform, you may want to consider if a platform uses a Two Factor Authentication process for security and do research on a platform’s reputation based on the customer reviews and the general take on a platform.

Based on these critical factors, here are some excellent trading cryptocurrency platforms.

1. Coinbase

This platform has more than 13 Million active users worldwide. Its reputation precedes it as a great exchange with a significant liquidity pool and operates in more than 30 countries with 40+ licensed platform outlets that operate in the US alone. Any amount of any tokens purchased in this platform is secure and of high quality.

2. Bitcoin Up

It has a reputable customer care service that works 24/7, and this reputation has gained the platform users from all walks of life as a trusted platform to trade cryptocurrency. It is among the first crypto platforms and helps its users to have a safe space to trade their coins. The platform has received good PR coverage from Yahoo Finance and Forbes.

3. Kraken 

Following the hack that hit Mt.Gox, developers created Kraken, intending to be the most secure exchange platform. Because of this, they keep their currencies offline, and they offer a 2-factor Authentication process accompanied by authentication from apps like Yukibey that verify log-in credentials. It garnered international respect by doing audits that showcased how secure the platform is.

4. Binance

It was among the first created public cryptocurrency exchange platforms, and because of its early onset, it has many users. Its security measures are top-notch because, with every trade and transaction, their users have to key in their passwords that are 2FA codes. Additionally, it uses (CCSS) CryptoCurrency Security Standards to protect investors’ accounts.

5. Bittrex

It is a platform that is yet to suffer a security hack and stores more than 80% of its trade assets and coins offline through a multi-stage wallet that has additional security. This platform also follows Anti Money Laundering policies and (KYC) know-your-customer that helps to filter through illegal activities. Its high-security standards have attracted many traders to the platform and increased liquidity pools. 

How to stay safe while trading on these platforms

As an investor in cryptocurrency, trade can go in one of two ways; you can win or lose in your investments at any particular moment. To avoid the dangers of the crypto market and protect your investments, here a few guiding principles according to platform:

1. Don’t put all your coins in one basket.

Diversification is the way to go in any sort of trading market, including cryptocurrency. All currencies in this platform do not act the same or survive market inflations at par; as a trader, you should be mindful not to trade in just one currency. With diversified coins on different platforms, a user may survive this new financial trend.

2. Protect your data and computer

Cryptocurrency platforms and wallets are vulnerable to hacks, as has been noted in the past. Ensure that your codes are malware-proof, and a good anti-virus guards your computer for protection. Try your best to keep all your wallets offline; otherwise, you would lose all your data and coins in case of a hack.

3. Do enough research

Before you can invest in any platform, conduct adequate research and make sure to understand the full extent of what you are investing in. ICO (Initial Coin Offering) is a way to raise money from borrowing from the public. Make sure to do prior research on the platform you are giving money to.

4. Do not entertain FOMO.

When it comes to trading cryptocurrency, the Fear of Missing out (FOMO) is the greatest obstacle to success. When the market is this hot, and there are Tweets to support just how much money people are making off of the Crypto trade, there is a constant need to join the winning crowd; and this is a recipe for disaster. Do sensible research before trading in any cryptocurrency market pool.

5. Understand how the market works

Before and during a trade, you should make it a point to understand how this market works. Otherwise, you are bound to suffer losses. Ensure you understand the full extent of what your investments in these platforms can amount to. Since the cryptocurrency market is highly volatile, you may want to prepare for that as well.

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